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What Is the Best Binary Option Trading Platform

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Written by Timothy Sykes
Updated 4/21/2023 15 min read

The best binary option trading platform is a tough question.

I can’t in good conscience recommend any. But some platforms are outright scams… Consider this article harm reduction.

Binary options trading is already very risky. That’s why you don’t need the extra hassle of dealing with a bad binary option trading platform.

The problem here is that a LOT of binary option trading platforms are scummy. I don’t trade binaries myself, but — as in every kind of trading — who you trust with your money is important.

In this article, we’ll delve into what makes a less-bad binary option trading platform. Let’s dive in!

What Is Binary Options Trading?

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Binary options trading is a trading method where you predict an option’s “moneyness” — the intrinsic value of the option. These options are called binary because you only have two answers and two outcomes.

Trading binary options is a guessing game. You guess whether an option will meet or exceed its strike price when it hits the expiration time. If you’re right, you make money. If you’re wrong, you lose the initial investment.

How are binary options different from stock options? Stock options still have an underlying asset. The binary options market trades on pure predictions without assets involved. If you think the asset price will meet its strike price, you buy the option. If you don’t think it’ll meet the strike price, you sell the option.

People often call binary options a type of gambling because you win or lose everything. Either you’ll get the maximum payout or get nothing, with few in-betweens. This is also why binary options are also called all-or-nothing options.

Just like regular options, the binary market covers different assets. Some examples include:

  • Foreign currency pairs
  • Stock indices
  • Commodities
  • Economic events

Learn more by reading my guide about the basics of binary options trading

How Risky Is Binary Trading?

Binary trading is very risky because it’s all or nothing.

Sure, you can get a big return on investment if you’re right. But you’ll lose everything if you’re wrong. That’s one of the main reasons why people compare binary options trading to gambling.

It’s also why binary options traders can’t follow Rule #1: cut losses quickly.

But the extreme difference between wins and losses isn’t the only risk about binary options. Binary options are relatively new, and there aren’t a lot of regulated brokers out there. This means scams are more likely for binary options than other trading vehicles.

Some unsavory binary options companies even engage in trade manipulation. They bait traders with attractive return rates to scam them out of their money. Many of these brokers operate overseas, so you can’t sue them.

I’m not saying every binary options platform is a scam. I’m saying that you should be very careful when choosing a binary options broker.

Regular options trading is a great alternative to trading binaries. Learn more about the risks, how options trading works, and tax implications.

Our Criteria for Selecting Options Trading Platforms

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There are dozens of binary options trading platforms available. But not all of them are trustworthy. Some of them are bad, and some others are outright scammers. That’s why you need to select your broker carefully.

I apply the same rule of thumb for all my trading platforms. A good trading platform doesn’t hinder me from making trades. 

I want reliable trade executions. I also want great customer service that can help me when problems arise.

What other factors do I consider when choosing binary options trading platforms? Here they are:

Years in Business

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Experience is important in any business — especially the brokers behind binary options platforms. Brokers with many years under their belt are usually more trustworthy. Why? Because if they scam customers, they won’t be around for long.

Likewise for the platform itself. They’ve had more time to tweak their platforms and get them into the best shape they can be.

Most importantly, they’ve had more time to be reviewed. Reading reviews will give you a good feel for whether the broker and platform is right for you.

Regulatory Status

Here’s the harsh truth about binary options brokers: many binary options brokers don’t have licenses. Even if they do, they might not be licensed to operate in your country. Unregulated financial institutions will face fewer consequences for screwing around with your money.

Always check a binary options broker’s license before choosing. For binary brokers in the United States, you can check for a license from one of these regulatory bodies:

  • Commodity Futures Trading Commission (CFTC)
  • Securities and Exchange Commission (SEC)

Most binary brokers are located outside of America. They usually operate from countries like Hong Kong, Saint Vincent, and the Seychelles. If you’re eyeing an offshore broker, make sure its host country’s regulatory body licenses it.

Asset Offering

You can trade binary options representing different assets. Just like other trading vehicles, having a wide selection of assets is usually a good sign. Choose the binary option platform with the asset type you’re most likely to trade.

Like to trade multiple asset types? You don’t have to be tied to a single platform. You can start accounts on multiple brokers.

Minimum Deposit Requirements and Trading Amounts

Most binary options platforms have a minimum deposit. Minimum deposits can range from a few bucks to several thousand.

Don’t want to risk too much to just try out binary options trading? Find a platform with low minimum deposits.

Some brokers also impose minimum trade sizes, which might impact your strategy. If you’re just dabbling, I suggest finding brokers with low minimum trade sizes.

Deposit and Withdrawal Methods

Trustworthy binary options brokers should provide transparency regarding payment methods. They typically let you deposit and withdraw money through various means. This includes credit or debit cards, cryptocurrencies, and wire transfers.

Withdrawal speeds also matter. Some of the best brokers let you receive the money within hours or minutes of the withdrawal request. Others may take a few days to send your money.

Demo Accounts and Virtual Trading

It’s good practice to paper trade with any strategy you don’t have experience with — especially one as notoriously hard to profit from as binary options. Virtual trading allows you to use virtual money to try making binary options trades.

Another perk of demo accounts is that you can use them to try the platform’s features without committing money. If you don’t like how the trading tools work, you can simply walk away and try another platform.

Mobile and Desktop Availability

Everybody has different preferred trading devices. I like trading on my laptop — desktop apps usually have more features. But some people prefer mobile trading apps because they’re often out and about.

Whatever your preferences, choose the broker that best fits your needs.

Our Top 10 Picks

My top binary options trading platform picks are:

  • Pocket Option — The Beginners’ Binary Options Trading Platform
  • Expert Option — The Non-Western Binary Options Trading Platform
  • Nadex — The U.S. Binary Options Trading Platform
  • Olymp Trade — The Low Minimum Deposit Binary Options Trading Platform
  • Binary.com — The Veteran Binary Options Trading Platform
  • RaceOption — The U.K. Binary Options Trading Platform
  • Binomo — The IFC-Certified Binary Options Trading Platform
  • Quotex — The Web-Based Binary Options Trading Platform
  • Spectre.ai — The Blockchain-Based Binary Options Trading Platform
  • World Forex — The Forex-First Binary Options Trading Platform

There are dozens of binary options trading platforms out there. Not all of them are reputable, and not all of them are good.

To help you out, here are some of my recommended picks.

Many don’t accept American and Canadian traders, along with having other restrictions. This is because the better regulated countries are more strict about binary options, because so many people lose money by trading them.

Looking for options trading brokers? Check out my guide to the best option trading platforms.

1. Pocket Option — The Beginners’ Binary Options Trading Platform

Pocket Option is a beginner-friendly binary options trading platform. You can start trading on Pocket Option with just a $5 initial deposit.

It also has a $1 transaction floor, meaning you can start by making very small trades.

Why We Like It

Pocket Option offers a demo account, so you can try out binary options trading before committing real money. Pocket Option also has instant withdrawals, allowing you to cash out your gains as soon as you make them.

2. ExpertOption — The Non-Western Binary Options Trading Platform

ExpertOption boasts over 70 million trading accounts. It’s highly popular thanks to its low initial deposit. Plus, it offers different account types that cater to different traders.

Why We Like It

ExpertOption has zero transaction fees and excellent customer service. It also accepts multiple ways to pay. That means you can use credit cards, wire transfers, and various online services.

The only drawback of ExpertOption is that it doesn’t accept American, Canadian, Australian, Israeli, and European binary options traders.

3. Nadex — The U.S. Binary Options Trading Platform

Nadex is a binary options exchange based in the United States and regulated by the CFTC. It offers one of the most legit and trustworthy options platforms on this list.

Nadex also has a free virtual trading account so you can try its interface.

Why We Like It

Nadex has almost-nonexistent trading fees at just $1 per transaction. This offsets its relatively high $250 initial deposit. It also offers many kinds of assets like stock indexes, forex pairs, and commodities.

4. Olymp Trade — The Low Minimum Deposit Binary Options Trading Platform

Cyprus-based Olymp Trade has one of the lowest barriers to entry in the binary options game. Beginner traders only need a $10 original deposit, and you can trade as low as $1 per transaction.

Why We Like It

Olymp Trade has a user-friendly trading platform compatible with desktop and mobile devices. It also offers webinars and training materials to familiarize customers with binary trading.

One thing to know about Olymp Trade is that it primarily takes customers from Asia. It doesn’t have the necessary approvals to take on North American and European customers.

5. Binary.com — The Veteran Binary Options Trading Platform

Binary.com is one of the oldest binary trading platforms available. Founded in 1999, it already has regulatory approval in multiple countries.

Why We Like It

Binary.com offers fast trade executions. This means your orders will be completed within seconds. It also has over 100 types of options spanning various commodities and indexes.

But you should know that Binary.com isn’t available for American and Canadian traders.

6. RaceOption — The U.K. Binary Options Trading Platform

RaceOption is a United Kingdom-based online trading platform with mobile and desktop capabilities. It boasts fast withdrawal and 24/7 customer support to address your issues.

Why We Like It

RaceOption lets you make an account within minutes. It also has regular contests and prize draws that might earn you extra money.

7. Binomo — The IFC-Certified Binary Options Trading Platform

Binomo is a relatively trustworthy Internet-based trading platform. It’s a member of the International Financial Commission (IFC). The IFC ensures Binomo’s transparency and may step in to resolve disputes if necessary.

Why We Like It

Binomo has a demo trading account where you can spend up to $1,000 in virtual funds to test the platform. It also has VIP customer accounts for binary traders who deposit more than $1,000. VIP users get extra assets, fast withdrawals, and a personal success manager.

8. Quotex — The Web-Based Binary Options Trading Platform

Quotex is a fully web-based binary options trading platform based in the Seychelles. It’s a member of the International Financial Market Relations Regulation Center (IFMRRC).

Something worth noting: the IFMRRC isn’t an official regulatory body. It’s a third-party dispute resolution organization. But that’s still better than no regulation at all.

Why We Like It

Quotex is fully web-based, meaning you don’t have to download any extra apps. It offers diverse expiry times, so you can buy binary options that expire within minutes or ones that expire in a month.

9. Spectre.ai — The Blockchain-Based Binary Options Trading Platform

Spectre.ai is a blockchain-based binary options platform. Here, your trades are handled by the blockchain and not an intermediary. In theory, this increases liquidity and eliminates fraud.

Why We Like It

Spectre.ai’s blockchain structure means instant trade execution. Fortunately, deposits and withdrawals aren’t crypto-exclusive.

When it first started, you needed ETH to deposit and withdraw funds from Spectre.ai. Now, you can also use U.S. dollars.

10. World Forex — The Forex-First Binary Options Trading Platform

World Forex lets you start with a $1 minimum deposit. It also provides 24/7 customer support for new user assistance.

Why We Like It

World Forex offers a good range of options contract durations. You can buy contracts with expiration dates spanning from one minute to one week.

This Internet-based trading platform also has a virtual trading account so you can test its interface. This way, you know what you’re getting into.

Key Takeaways

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Binary options are a bit like the Wild West. They’re notorious for their lack of regulations and the prevalence of scams. Choosing the right broker is important because you want one that won’t get in your way or trick you out of your money.

Binary options trading is risky, but it can be profitable. Here’s how you can boost your odds of getting a good return on investment:

  • Study hard and learn from successful traders.
  • Limit your level of risk.
  • Record every trade.
  • Review past trades and learn from them.

You can’t really get an edge in binary options trading, which is the big reason I’d advise you to stay away. Even professional traders with years of trading experience have difficulties with binary options.

While it’s not gambling, it’s close to it. Luck is one of the biggest deciding factors, which is the opposite of what trading should be.

If you’re interested in options trading, there are strategy-based trading styles out there. If you don’t know where to start, check out my former student Mark Croock’s Evolved Trader mentorship program.

Mark has earned $4 million mostly from trading options. He adapted my penny stock strategies to options, to great effect.

Are you going to follow my advice and stay away from binaries, or are set on trading them? Let me know in the comments!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”